Salmon harvest at a farm in SalMar. (Photo: SalMar)

SalMar reports 'satisfactory' results despite biological problems

SalMar, the Norwegian farmed salmon producer,considers that the results obtained in Q4 of 2015 were satisfactory, despite the biological problems that it still faces.

The company informed that the biological situation for its Central Norway fish farming segment remains a challenge, and contributed to higher costs in the fourth quarter of 2015.

Conversely, its biological status in the Northern Norway segment is satisfactory. This, combined with good underlying operations, contributed to a strong result in the quarter.

The company noted that the positive price trend continued in Q4, driven by a tight market and a weak Norwegian currency.

Higher prices were, however, partly offset by the fact that 50 per cent of the volume harvested in the period was sold under contracts at prices lower than spot.

The salmon producer generated gross operating revenues of NOK 2.04 billion (USD 238 million) in the fourth quarter 2015, marginally up from the same period the year before.

SalMar harvested 38,100 tonnes in Q4, 3,600 tonnes less than in the same period in 2014.

Operational EBIT totalled NOK 374.3 million (USD 43.7 million), down from NOK 508.7 million (USD 59.4million) in the last three months of last year.

The performance of its Central Norway and Rauma segments is still affected by biological problems, and this is reflected in the high cost of keeping the level of salmon lice below regulatory thresholds.

In order to control the level of lice, SalMar has on its own initiative elected to harvest fish earlier than planned, which resulted in a lower average weight, higher production costs per kilo and lower prices achieved.

CEO Leif Inge Nordhammer said, "Favourable price developments measured in NOK contributed to a satisfactory result for the year as a whole, and the board is proposing a dividend of NOK 10 [USD 1.16] per share for 2015."

On the other hand, the Northern Norway segment's underlying operations performed well during the quarter, with good growth and a high weight at harvest.

The sales and processing segment recorded an operating loss, largely due to the fact that half the volume harvested was sold under contracts at lower prices, combined with the costs associated with fighting sea lice.

The company estimates its global supply of Atlantic salmon will fall by 3 per cent in 2016 to 2.23 million tonnes. This is 80,000 tonnes less than in 2015.

[email protected]
www.seafood.media

Address:	Industriveien 51,
City:	Kverva
State/ZIP:	(NO-7266)
Country:	Norway
Phone:	+47 7244 7900
Fax:	+47 7244 7901
E-Mail:	[email protected]
More about:

 

 

 

 

 

 

Print